THELOGICALINDIAN - As allotment of Japans adapted Payment Services Act which will access into force on April 1 the Act on Prevention of Transfer of Criminal Proceeds has additionally been revised This act requires Japanese bitcoin exchanges to apparatus a stricter Know Your Customer KYC process
Also read: How Japan’s New Regulations Affect Bitcoin Exchanges
Japanese Exchanges Affected
The adapted Payment Services Act has continued been discussed in Japan, but the date which it would access into force was not ahead set. However, aftermost Friday, the Japanese Financial Services Agency (FSA) assuredly announced that the date for which this act will become law is April 1.
This adapted act additionally revises the Act on Prevention of Transfer of Criminal Proceeds which requires bitcoin exchanges to apparatus stricter KYC behavior than how they accept been doing. They charge alpha checking the identities of barter who accessible accounts, accumulate transaction records, and acquaint authorities back a apprehensive transaction is recognized.
Major bitcoin exchanges in the country are now responding to this law. Both Coincheck and Zaif exchanges acquaint on their websites a new set of rules apropos KYC on Friday. Coincheck states that:
According to Coinhills, Coincheck is the third-largest bitcoin barter in Japan with a 24-hour trading aggregate of about 22,300 BTC at columnist time, admitting Zaif is the fourth better with about 14,400 BTC trading aggregate in the aforementioned time period.
The barter with the best trading aggregate globally is Bitflyer, with over 98,000 BTC traded aural 24 hours. Its trading aggregate is over four times that of the second-largest exchange, the Singapore-based Quoine.
The Japanese yen has acquired the rank of the world’s best traded bill for bitcoin, occupying 44.5 percent of the all-around bitcoin trading volume. This is abundantly a aftereffect from China’s abatement from supremacy in the breadth and Japanese exchanges actively pushing their now-common zero-fee trading practice.
Revising KYC Procedures
On its website, Zaif details its new KYC action and encourages its barter to accessible an annual afore the new law go into aftereffect on April 1, citation that annual aperture will 
be added difficult afterwards that time.
The barter explains that afterwards April 1, three sets of user identification will be appropriate to accessible an annual at the exchange. It explains that (translated from Japanese):
For postal mail verification, the barter will accelerate a postcard to anniversary customer’s registered abode by “simple registered mail” as appropriate by the law, Zaif explains. Barter will again charge to access their identification cipher as declared in the postcard. Zaif reiterates that it cannot accessible an annual for a chump unless all three requirements are satisfied, abacus that barter who accept not accepted one of the three requirements “may not be able to use Zaif in part”.
Coincheck has a agnate process, as categorical in the accomplish beneath which are acquaint on its website.
Meanwhile, Bitflyer claims to accept already been accustomed out austere identity verification checks “to a akin beyond that of accustomed banking institutions”, according to its website. For circadian affairs of added than ¥50,000, the company verifies customers’ coffer annual information, as able-bodied as acute barter “to abide an ID selfie (photo-affixed official character analysis affidavit and selfie picture) as able-bodied as a passport/driving authorization copy”.
However, the barter still has to adapt its KYC action to accede with the new rules. In an interview with Bitcoin.com aftermost month, Bitflyer architect and CEO Yuzo Kano said: “we accept already been audited and able the all-important centralized organisation changes. We will charge to change the KYC action to fit the new rule”.
What do you anticipate of Japanese exchanges’ new KYC procedures? Let us apperceive in the comments area below.
Images address of Shutterstock, Coincheck, Zaif, and Bitflyer
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